20051109 Technical Outlook JetFM
Despite last minute buying of selected blue chip stocks to push CI to close at 911.53, CI opened slightly lower at 911.43 as there was no follow through action(s) from previous day, traders were not seen interested to chase for stock(s), stock index took a dip to trade lower, CI subsequently fell to an intraday low of 906.49 before settled at 909.10 on last minute buying of selective blue chip stocks. For Wednesday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 911.6 & 914.1; 1st and 2nd support levels will be 906.5 & 903.9.
Chart wise: Profit taking pushed CI lower. Following the down close on 7/11/2005, CI continued to come under selling pressure as profit taking activities rolled in, CI was particularly weakened when sellers sold their shares down to break the 910 level. Sellers decided to lock in their trading profit(s) available to them first in anticipation of more downside in the stock market. At this juncture, the rebound we saw in CI from 902.39 on 28/11/2005 to 915.87 on 7/11/2005 could only be deemed as a technical reaction in the recent market decline, CI would be expected to go lower than 900. However, this expectation would be further strengthened if CI could close below 904 in next few days. While CI was expected to trade lower, 915 remained as a crucial level to watch on the upper side, because a close above this 915 level would signal a turnaround of stock market from down to up. Nevertheless, yesterday volume was smaller at 215.80 million compared to 7/11/2005, a sign of unwillingness to heavily commit short position; thus, we would not be seeing CI to fall very much in today market. An analysis of the market action(s) revealed that selling pressure was much stronger than buying power. Traders were simply not interested to buy stocks at this price level, they were in fact more keen to take profit(s).
Technical wise: MACD line cut down the signal line from above to emit a sell signal on 17/10/2005. MACD line was seen moving away from the signal line with readings fell to -3.59 (8/11/2005) from -3.92 (7/11/2005), signal line readings has also weakened to -3.51 (8/11/2005) from -3.49 (7/11/2005), an indication of a downtrend market. On Directional Movement Index, -DMI crossed over +DMI on 8/11/2005 to indicate a stronger down move. On the reading scales, -DMI was unchanged at 22 on 8/11/2005 and +DMI fell to 20 from 24 on 7/11/2006. ADX fell lower from 42 (7/11/2005) to 35 (8/11/2005), an indication of a weakened trending situation compared to 7/11/2005. As for Stochastics, %K line cut above the %D line in the oversold zone to give a buy signal on 31/10/2005. %K rose to 20.4 from 17.3 (7/11/2005) with %D also went up from 14.8 (7/11/2005) to 17.6 (8/11/2005).
Our stock recommendation(s) for today is(are):
AWC (Trading Buy) at RM0.26 with a stop loss at RM0.23
Chart wise: Profit taking pushed CI lower. Following the down close on 7/11/2005, CI continued to come under selling pressure as profit taking activities rolled in, CI was particularly weakened when sellers sold their shares down to break the 910 level. Sellers decided to lock in their trading profit(s) available to them first in anticipation of more downside in the stock market. At this juncture, the rebound we saw in CI from 902.39 on 28/11/2005 to 915.87 on 7/11/2005 could only be deemed as a technical reaction in the recent market decline, CI would be expected to go lower than 900. However, this expectation would be further strengthened if CI could close below 904 in next few days. While CI was expected to trade lower, 915 remained as a crucial level to watch on the upper side, because a close above this 915 level would signal a turnaround of stock market from down to up. Nevertheless, yesterday volume was smaller at 215.80 million compared to 7/11/2005, a sign of unwillingness to heavily commit short position; thus, we would not be seeing CI to fall very much in today market. An analysis of the market action(s) revealed that selling pressure was much stronger than buying power. Traders were simply not interested to buy stocks at this price level, they were in fact more keen to take profit(s).
Technical wise: MACD line cut down the signal line from above to emit a sell signal on 17/10/2005. MACD line was seen moving away from the signal line with readings fell to -3.59 (8/11/2005) from -3.92 (7/11/2005), signal line readings has also weakened to -3.51 (8/11/2005) from -3.49 (7/11/2005), an indication of a downtrend market. On Directional Movement Index, -DMI crossed over +DMI on 8/11/2005 to indicate a stronger down move. On the reading scales, -DMI was unchanged at 22 on 8/11/2005 and +DMI fell to 20 from 24 on 7/11/2006. ADX fell lower from 42 (7/11/2005) to 35 (8/11/2005), an indication of a weakened trending situation compared to 7/11/2005. As for Stochastics, %K line cut above the %D line in the oversold zone to give a buy signal on 31/10/2005. %K rose to 20.4 from 17.3 (7/11/2005) with %D also went up from 14.8 (7/11/2005) to 17.6 (8/11/2005).
Our stock recommendation(s) for today is(are):
AWC (Trading Buy) at RM0.26 with a stop loss at RM0.23
posted by emacro @ 6:23 PM
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